Is upfront material information creating a consumer-focused moving process?

Complete guidance on Material Information parts A, B and C has been live in the property industry since last November. While Estate Agents and the wider industry have been working hard to get up to speed, iamproperty believes there are still some myths to bust, to enable upfront Material Information to really create a consumer-focused moving process. Beth Rudolf of The Conveyancing Association offers some practical advice.
 
 Myth 1: Sellers won’t complete Material Information questionnaires before finding a buyer
 
Reality: Sellers are more comfortable completing forms early on
 
Experience shows that psychologically, sellers are more inclined to complete necessary forms at the point of listing their property. At this stage in the process, they are motivated to get their property market ready, as they want to do everything they can to get their property ready for sale. But, once a buyer is found, sellers often become anxious about disclosing information that might deter the buyer and can be preoccupied with their own move. By instructing the seller’s conveyancer at the time of listing, sellers can complete questionnaires more quickly and thoroughly and with the right motivations to ensure all property information is reviewed upfront.
 
Myth 2: Buyers can't rely on seller-completed questionnaires provided by Estate Agents
 
Reality: They can, it doesn’t take away from necessary due diligence
 
As long as the seller completed the questionnaire or information comes directly from the relevant authorities or is verified by the seller’s conveyancer, buyers, lenders, and valuers can rely on it for due diligence. Of course, data from the Land Registry on the tenure is more reliable than a seller’s memory, which is why we get the official documents. But when it comes to the TA6 or BASPI questions we rely on the seller’s responses. Where it is based on opinion or of particular importance to the buyer, the buyer’s conveyancers will do more due diligence. For example, if the seller says they didn’t need planning permission for an extension, but the buyer intends to extend further, then it is likely that you would check with the local authority or a specialist as part of your due diligence.
 
Myth 3: Buyers don’t read any information or advice given after a sale is agreed
 
Reality: Providing Material Information early encourages buyer engagement and informed decision-making
 
Once a sale is agreed, buyers are often more focused on their move and view any negative information as obstacles. Psychologically they see it as a challenge to be overcome, with loss aversion having a big impact when they have already put money into the transaction. By providing Material Information before an offer is made, buyers are more likely to read, absorb, and understand its implications. It will also reduce risk and wasted resource for conveyancers and estate agents, as buyers will be more inclined to offer on properties more suitable for them and select a lender who will lend on it. 

Myth 4: Searches ordered at listing will be out of date by contract exchange
 
Reality: Most transactions complete within acceptable timeframes
 
9 out of 10 transactions complete within the six-month period, referenced by the UKF Handbook. Though this is an arbitrary timescale; searches of course are out of date the moment they leave the search company, you will not get an email from the local authority if they add another charge the day after they sent you the search – however they will serve notice on the seller and that is why the seller is obliged to notify their buyer of any notices received prior to completion.
 
Myth 5: Having to pay for Property Packs would reduce market activity
 
Reality: Historical data shows no decrease in listings
 
When Scottish Home Reports were introduced, there was no reduction in the number of properties coming to market. Similarly, companies offering Property Packs in England and Wales report no pushback from sellers. Providing upfront information doesn’t deter sellers but rather facilitates smoother transactions, reducing the number of failed transactions by two-thirds in Scotland. Companies in England and Wales also report that the production of a ‘Contract Ready Property Pack’ significantly reduces fall throughs and sellers dis-instructing and selling through competitors.
 
Material information is still new to the industry and iamproperty believes that the benefits of harnessing this is the biggest opportunity of the decade. To support Estate Agents with the changes, it is included within iamproperty’s movebutler solution combined with AML compliance, legal preparation and surveys, to get everyone moving faster.